RESOURCE ARTICLES BY CATEGORY
Valuation
Forensic Accounting
Financial Reorganization
Intellectual Property
Economic Damages
Lost Profit Damage Claims
Newsletters
Advice for Receivers
Fraud, in extreme cases, can compel a company's secured creditors to call in their loans. In these situations, Gleason & Associates is often tapped by banks and other fiduciaries to act as a receiver or to provide financial consulting to receivers.
As a receiver, Gleason has both liquidated a company's assets and served as operating management until a new buyer for the distressed company could be found. In another recent engagement our role as the interim financial manager was to neither liquidate the assets nor run the company but to keep the business open by controlling the cash and managing the finances for the current owner until a new owner was identified and a sale of the business could be completed.
"While no two deals are identical, our experience with these engagements can be helpful to our clients who are also called on to act as receivers," says Doug King, director for Gleason & Associates.
Lessons Learned
Advocate for possession and control of assets quickly. In an engagement involving the liquidation of an out-of-state car dealership, there was a week between the court's order and the effective date of the receivership. "Employees were effectively given exclusive access to the company's assets, and some assets walked out the door before we were legally able to change the locks," says King.
Focus on receivables as well as the creditors. Evaluate whether the value of receivables is worth the investment of time and resources to collect them. And be wary of unscrupulous owners who may try to personally collect from vendors, advises King.
Verify insurance coverage. "In several engagements we faced lapsed or expiring policies and needed to identify new insurers or negotiate continuations for adequate coverage of the company's assets until they were sold," says King. Ditto for surety bonds, a requirement for some regulated businesses to operate legally in certain states.
Understand state laws that impact the company in receivership. In another engagement involving a Midwest auto dealership, "our intention was to incur only the expenses necessary to stay open, and these included expenses required for compliance with state regulations - for instance, timely remittance of the state sales tax, license and registration fees associated with vehicle sales," explains Senior Manager Kevin Dadey.
Negotiate with third-party agents. By researching and comparing payroll providers, for example, Gleason & Associates was able to negotiate a free month's payroll processing for the dealership, which helped to reduce expenses while the dealership continued to operate until the new owner took over.
For more on receiverships, read the following case studies: Liquidation Leads to Turnaround and Driving the Sale of an Auto Dealership.
Excerpted from Briefly
Speaking, a complimentary newsletter published
by Gleason & Associates.
.
Why Gleason | Practice
Areas | Meet Our Team | Case
Studies | Continuing Education | Resources
| Site Map | Contact Us
| Home
© 2011 Gleason & Associates
One Gateway Center, Suite 525, 420 Ft. Duquesne Blvd., Pittsburgh, PA
15222, Phone: 412.391.9010,
